The Kagi chart is a type of technical chart used in forex trading that is based on price action rather than time. It is constructed using a series of vertical lines and horizontal lines, with changes in direction occurring when the price moves beyond a predefined reversal amount. The Kagi chart is useful for identifying trend reversals and key support and resistance levels. Traders can use it in combination with other technical indicators and chart patterns to form a complete trading strategy. However, it's important to understand its limitations, such as its sensitivity to price fluctuations and the potential for false signals.